Strong conditions for investing in infrastructure

The need for new infrastructure is underpinned by economic growth, urbanisation and population growth. Fortunately, Managing Director Transport of Commonwealth Bank Christopher Scougall, argues that "investor demand for infrastructure has never been stronger and conditions for investing in infrastructure have never been better." Below we list everything you need to know about Scougall's report.

Australia’s continued economic growth and rapidly expanding cities make it an attractive destination for infrastructure investment

Transport is a beneficiary of this. The Australian Infrastructure Metric reported a 40% increase in transport infrastructure investment in the year to 30 June 2015.

Growing demands on Australian transport infrastructure

Car travel times are expected to lengthen by at least 20% between 2011 and 2031 in the six largest capital cities

If left unaddressed, the cost of road congestion would increase from $13.7 billion in 2011 to $53.3 billion in 2031

Demand for public transport in capital cities is set to rise by an average of 89% over that period

Air travel demand is expected to double over the next 15 years. Airports will have to expand capacity, necessitating growth in retailing and roads around airports.

Asia’s growing middle class propels air travel

Only 20% of the world’s population has flown despite global air traffic doubling every 15 years since 1983

The industry expects air travel to continue on this trajectory, driven by economic growth, increasing urbanisation and an expanding middle class

The Asia Pacific’s middle class is expected to grow from 525 million in 2009 to 1.7 billion by 2020 and 3.2 billion in 2030, accounting for 66% of the globe’s middle class

As people accumulate wealth, they like to travel to see the world. Year-on-year growth in international and domestic air travel in Asia Pacific in July outpaced the global rate.

Government and private sector involvement

Governments are positioning themselves to meet the infrastructure challenge. The WA Government has a $5 billion asset sale program and the NSW Government is tendering long-term leases on its transmission and distribution assets. Some of the proceeds are being channelled into transport projects including Sydney CBD Light Rail and NorthConnex

NorthConnex demonstrates that the private sector is developing well thought out infrastructure proposals

As a leading global financier of infrastructure, we’re seeing this focus on infrastructure investment in the other jurisdictions we cover: Europe, the US and Asia.

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